Narrowing supply side and rebound in caustic soda prices

Price trend

 

Sodium Molybdate

According to monitoring data from Business Society, the price of caustic soda has continued to decline since mid October and has rebounded this week. At the beginning of the week, the average price in the Shandong market was 822 yuan/ton, while on weekends, the average price in the Shandong market was around 836 yuan/ton, with an overall price increase of 1.7%. On November 8th, the chlor alkali index was 1025 points, a decrease of 6 points from yesterday, a decrease of 51.83% from the cycle’s highest point of 2128 points (2021-10-24), and an increase of 43.96% from the lowest point of 712 points on January 5th, 2016. (Note: The cycle refers to the period from December 1st, 2011 to the present)

 

Market aspect

 

According to data from Business News Agency, the domestic liquid alkali market prices have stopped falling and rebounded. Mainly because the inventory of maintenance caustic soda enterprises has decreased, and most caustic soda enterprises have increased their prices. Mainstream prices in the domestic market: The mainstream market prices for 32% ion exchange membrane alkali in Shandong region are around 780-850 yuan/ton, the mainstream market prices for 32% ion exchange membrane alkali in Henan region are around 2850-3000 yuan/ton (converted to 100%), and the mainstream market prices for 32% ion exchange membrane alkali in Zhejiang region are around 780-860 yuan/ton.

 

On the supply side

 

From a supply perspective, there have been many maintenance companies recently, resulting in a narrowing of the supply side and a slight easing of the pressure on caustic soda supply.

 
In terms of demand

 

Data shows that the recent operating rate of alumina plants is around 80%, and the operating rate of adhesive short fibers is around 77%. The downstream pressure phenomenon has been alleviated, and the demand for caustic soda in the downstream is slightly better than before. The purchasing enthusiasm has slightly increased, and the price of caustic soda has increased.

 

Analysts from Business Society believe that in the near future, domestic liquid alkali prices have stopped falling and rebounded, some devices have been repaired, and the pressure on enterprises has slowed down. Downstream demand is more positive than before. Overall, it is expected that the future trend of caustic soda prices may be mainly upward, depending on downstream market demand.

http://www.lubonchem.com/

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